The Northern Michigan second home market has begun to display signs of a positive uptick and strength over the past several months as the ripple of the rebounding housing market continues to make its way across the U.S.
Michigan buyers are exhibiting more confidence in their income and overall economic stability. As they once again return to the vacation home market in resort and vacation communities in Northern Michigan, they are discovering prices that are still roughly 20 percent or more below their pre-2008 peak.
Unlike the suburban areas, where a drought of housing inventory continues to push up prices and lower buyers’ negotiating power, the vacation properties of Northern Michigan are still plentiful, offering buyers a more varied selection and plenty of negotiating room.
Properties along Michigan’s Higgins and Houghton lakes fell almost 40 percent during the market crash. Cottages and smaller houses along the lakes have regained about 15 percent of their pre-crash value, attracting buyers from across the country. While these properties are generally more expensive, middle-income second homebuyers will often find more affordable properties just off the lake.
Now that the stability of the residential housing market has worked its way across the country and prices in suburban areas are starting to rise consistently, vacation and second homes are becoming increasingly attractive to those with dispensable cash. As this market rebounds, it will strengthen and solidify the recovery of the overall Michigan housing market over the months to come.
Marcus McCue |
EVP & CBDO